Africa gets an extra seat on the IMF executive board

Daba Finance/IMF and World Bank Annual Meetings Marrakech

BREAKING NEWSOctober 16, 2023 at 5:43 PM UTC

During its first meetings on the African continent since 1973, member nations of the International Monetary Fund (IMF) reached a significant agreement to increase their contributions to the global lender and grant sub-Saharan Africa a third seat on the IMF's executive board.

The discussions at the week-long meetings in Marrakech, Morocco, emphasized the importance of bolstering the IMF's quota resources and ensuring that Africa has a more substantial presence within the institution.

Nadia Calvino, the Spanish Economy Minister who chairs the IMF Financial Committee, confirmed this development, stating that there was a consensus on a substantial increase in quotas by the end of the year.

Key Takeaways

The week-long annual meetings of the International Monetary Fund and World Bank concluded in Marrakech on Saturday, against the backdrop of ongoing Middle East violence and held in a country still in the process of recovering from an earthquake. The discussions during these meetings encompassed a wide range of global issues, including the challenges posed by a world economy burdened by debt, inflation, and conflict. Additionally, they addressed the increasing wealth disparity between affluent and impoverished nations and the ongoing struggles in addressing climate change. Quotas, which are determined by a country's economic size, play a crucial role in establishing a nation's contributions to the IMF, its voting influence, and the maximum amount of loans it can access. With this agreement, sub-Saharan Africa will now be represented by three executive board members, marking a step toward greater inclusivity and representation within the IMF.

IMF

World Bank

Sub-Saharan Africa

Marrakech

Morocco

IMF Executive Board